Intel, Amazon, Twitter: Your 60-second guide to today's financial-gasm

The good, the bad, and the Dorsey


We may be beyond the halfway point for the calendar year, but in the world of corporate finance we are squarely in the middle, as companies are posting their numbers for the three months to the end of June.

Rather than you slogging through spreadsheets and investor relations portals, El Reg is going to give you the bottom line for some of the biggest names reporting earnings this week.

Intel

Chipzilla turned in another strong second quarter FY2017, including an uptick in notebook processor sales offset the decline in desktop PC chips:

  • Revenues of $14.8bn were up 9 per cent on the year-ago quarter.
  • Net income was $2.8bn, up 111 per cent from last year's $1.3bn tally.
  • Earnings per share (non-GAAP) were $0.72, beating analyst estimates of $0.68.
  • Client computing generated $8.2bn in revenues for a 12 per cent gain, the data center group logged $4.4bn in sales, up nine per cent year-over-year, and IoT revenue was $720m, up 26 per cent. Flash memory sales were up 58 per cent to $874m, and the programmable solutions group – aka FPGAs – was down to $440m from $465m.
  • In terms of operating income, client computing grew to $3bn from $1.9bn; data center fell slightly to $1.66bn from $1.76bn; IoT improved to $139m from $89m; flash memory cut its losses to -$110m from -$224m; and the FPGA squad made $97m versus last year's $62m loss.
  • As far as shipments are concerned, client computing chips are up three per cent, year on year, with an eight per cent increase in average selling price. Notebook processors increased by 14 per cent, year on year, and desktop decreased one per cent. Data center shipments are up seven per cent, with a one per cent uptick in the average selling price.

"Q2 was an outstanding quarter with revenue and profits growing double digits over last year," said CEO Brian Krzanich.

"We also launched new Intel Core, Xeon and memory products that reset the bar for performance leadership, and we're gaining customer momentum in areas like AI and autonomous driving."

Amazon

The online retailer and its cloud side-biz turned in a solid second fiscal quarter, but took a beating in after-hours trading, as it fell short of analyst expectations.

  • Revenues ("net sales" in Amazon's terminology) were $38bn, up 25 per cent from last year.
  • Net income was $197m, down from $857m last year as Amazon opted to pour money back into its business, apparently without letting investors know (see below).
  • Earnings per share were $0.41, well short of analyst estimates at $1.42.
  • AWS revenue was $4.1bn, up 42 per cent from $2.89bn a year ago, while operating income was $916m, up 28 per cent from $718m in the year-ago quarter.

The big miss on earnings, plus horrendous guidance for the next quarter, had Amazon stock down 2.3 per cent in after-hours trading – and probably derailed, for the time being at least, Jeff Bezos' perch atop the richest person ratings.

Twitter

If you weren't concerned about the micro-blogging site's Q2 FY2017 before, you should be now. The 140-character troll-enabler saw its stock price fall 14 per cent before the markets even closed.

  • Revenues of $574m were down 5 per cent year-over-year.
  • Net loss was $116m, or 9 per cent worse than the $107m Twitter blew through last year at this time.
  • Earnings per share were listed at $0.08, beating analyst estimates of $0.05.
  • Monthly active users worldwide reached 328 million, up 5 per cent from Q2 2016. Strangely, despite all the political hullabaloo happening in the US at the moment, the number of monthly active users in America dipped from 70 million in Q1 2017 to 68 million this latest quarter.

Not surprisingly, investors were not thrilled with the news. Twitter's stock price fell 14 per cent to $16.84 per share at closing, and failed to rebound after hours with a $16.84 price. ®

PS: Apple discontinued its iPod Nano and Shuffle line today. End of an era, eh?


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